I believe Bethesda did that on purpose. Since destruction magic is range based, it has an advantage over 1- and 2-handed close combat attacks. And, IMHO, destruction magic is much easier to use than archery. That is, it is much easier to hit the target. So Bethesda purposely weakend down the destruction magic, so it's not too easy for the player in the end to kill enemies with it. 1- and 2- handed weapons might deal more damage after all, but it's always close combat (so you get hit too, obviously). And archery, even though more powerful than destruction magic, is harder to use; harder to hit enemies with a bow.
If destruction magic ultimately would deal as much damage as archery and 1- and 2-handed weapons do, in relation, it would be overpowered, because it is easier to hit the target with it than using a bow, and you don't get hit like melee based players. So they weakend the destruction magic down for balancing reasons.
Balance is all fair enough, but the argument is that Destruction does
nowhere near as much damage as Archery or melee, in fact so much less after perks that it's pretty much a redundant skill. Why would a mage bother with Destruction if they can just use the much more powerful Archery at no penalty? What's the point in Destruction as a skill at all, when it's so utterly outclassed by other similar skills? Archery and melee both have the potential to cause massive damage even to high-levelled enemies. Destruction does not.
And it's not like Destruction has any other function - Restoration heals, wards and repels undead; Conjuration summons pets, summons weapons and soul traps; Illusion affords Sneak capabilities and allows for crowd control; Alteration allows crowd control and affords defensive capabilities.
Destruction? Well, it deals damage... but FAR less than other damage-only skills, and it has no redeeming qualities to help balance the equation (I disagree that Archery is more difficult to hit with - EDIT: unless you mean Destruction spells like Flames or Sparks, which are admittedly easy to hit with, but are short-range enough that the user loses the distance benefit of magic). It even does less damage at high level than Conjuration, a skill that already gives several other powerful benefits, since summoned pets - get this -
get stronger as the skill increases.